Indian Oil (IOC) Q4 60/61 earnings summary

Executive summary

• First year of trading, with activity beginning in Sep–Nov 1960; the year ended with a net loss of Rs. 2,60,713.99, attributed mainly to competitive High Speed Diesel pricing.

• Marketing expanded through new installations, depots and branches, while the business prepared to market output from the Gauhati refinery.

Financial highlights

• Oil sales were Rs. 78,39,110.85 before discounts and allowances of Rs. 8,551.62; net oil sales were Rs. 78,30,559.23.

• Net loss for the year was Rs. 2,60,713.99; closing stock of oils was Rs. 26,22,349.23.

• Oil purchases from the U.S.S.R. were Rs. 57,48,459.04; customs duty was Rs. 1,60,630.23 and other landing charges were Rs. 3,30,077.17.

Outlook and guidance

• Gauhati refinery was expected to begin operations by end-1961; a railway wagon-ferry unit was scheduled for completion by 15 Dec 1961 to move refinery products across the Brahmaputra.

• The four-year agreement with V/O Sojuznefteexport covered imports of 1.5 million metric tonnes of petroleum products, including High Speed Diesel, Superior Kerosene and Aviation Turbine Fuel.

• The first-phase plan targeted 50 depots by 31 Mar 1962; four were completed and work had begun on another dozen by year-end.